Johor Plantations Group Berhad (formerly known as Johor Plantations Berhad) (JPG), a Johor-based upstream oil palm plantation company poised to expand into downstream plantation business, has signed a retail underwriting agreement with RHB Investment Bank Berhad, AmInvestment Bank Berhad, CIMB Investment Bank Berhad and Affin Hwang Investment Bank Berhad for its upcoming initial public offering (IPO). JPG is targeted to list on the Main Market of Bursa Malaysia Securities Berhad in the third quarter of 2024.
JPG’s IPO entails a public issue of 464.0 million new shares and an offer for sale of up to 411.0 million existing shares in JPG (collectively, the IPO Shares), involving:
i. Institutional offering of up to 797.5 million IPO Shares, representing 31.9% of JPG’s enlarged issued share capital, subject to clawback and reallocation, to be allocated in the following manner:
a) 312.5 million IPO Shares allocated to Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI); and
b) up to 485.0 million IPO Shares for Malaysian institutional and selected investors (other than Bumiputera investors approved by the MITI) and foreign institutional and selected investors outside the United States in reliance on Regulation S.
ii. Retail offering of 77.5 million IPO Shares, representing 3.1% of JPG’s enlarged issued share capital, subject to clawback and reallocation, to be allocated in the following manner:
a) 50.0 million IPO Shares to be made available for application by the Malaysian public by way of balloting, of which 25.0 million IPO Shares will be set aside for Bumiputera investors; and
b) 27.5 million IPO Shares will be reserved for application by the eligible persons who have contributed to the success of the JPG group.
RHB Investment Bank Berhad as the Managing Underwriter and Joint Underwriter along with AmInvestment Bank Berhad, CIMB Investment Bank Berhad and Affin Hwang Investment Bank Berhad as the Joint Underwriters will jointly underwrite the entire 77.5 million IPO Shares under the retail offering.
JPG’s Managing Director Mohd Faris Adli Shukery, said, “Our operational efficiency, reflected in our yields, has played a pivotal role in our success. With our listing on the horizon, JPG is set to become an integrated player in the downstream segment, optimising our position within the industry. We believe these plans will enhance the marketability of our products, enabling us to meet the growing industrial demand for palm oil and expand into new business segments through strategic growth. Our goal is to produce speciality oils and fats, along with other high-value downstream palm oil products, tailored for the food industry. This strategy aims to strengthen our position as a fully integrated oil palm producer and allow us to capture better margins across the value chain. Given the exciting developments ahead, we are well positioned for further growth and eagerly anticipate the future.”
RHB Banking Group’s Managing Director of Group Wholesale Banking Dato’ Fad’l Mohamed, said “We truly appreciate the trust and partnership we have built with Johor Corporation and JPG over the years and are honoured to have this opportunity to play a crucial role in this IPO exercise. JPG has a proven operational track record and yield among its peers, ownership of large plantations held strategically in Johor, and a proponent of strong sustainability practices and digitalisation initiatives. We believe JPG is poised for even greater success as they embark on their next growth phase. We remain committed to continue progressing with them to fulfil their aspirations.”
According to AmInvestment Bank Berhad’s Chief Executive Officer Tracy Chen Wee Keng, “AmInvestment Bank is proud to be involved in the IPO of JPG, a leading plantation company in Malaysia’s oil palm industry. Through its efficient management and focus on sustainability, JPG consistently achieves commendable yields and commands a pricing premium compared to its peers. We believe this IPO signifies the dawn of an extraordinary growth for JPG and sets the stage for its expansion into new markets and the realization of its full potential as an industry leader.”
CIMB Group’s Co-Chief Executive Officer of Group Wholesale Banking Novan Amirudin, said “We are honoured to be part of this milestone of JPG. Having charted solid track record and success stories over the years, JPG has proven to be a leading player within the Malaysian oil palm plantation industry as it continues to record remarkable operational performance. JPG’s great emphasis on sustainable practices is highly commendable, and we look forward to a continued partnership and future collaborations as JPG embarks on its expansion journey.”
Affin Hwang Investment Bank Berhad’s Chief Executive Officer Nurjesmi Mohd Nashir, said “Leveraging on our expertise in the Malaysian capital markets, Affin Hwang Investment Bank Berhad is proud to support JPG’s landmark IPO on the local bourse. We congratulate JPG on this significant milestone and look forward to collaborating on future endeavours.”
RHB Investment Bank Berhad is the Principal Adviser, Joint Global Coordinator, Joint Bookrunner, Managing Underwriter and Joint Underwriter for the IPO exercise. AmInvestment Bank Berhad and CIMB Investment Bank Berhad are the Joint Global Coordinators, Joint Bookrunners and Joint Underwriters. CLSA Singapore Pte Ltd and CLSA Securities Malaysia Sdn Bhd are the Joint Global Coordinators and Joint Bookrunners while Affin Hwang Investment Bank Berhad is the Joint Bookrunner and Joint Underwriter.
